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base currency


Definition
The first currency in a currency pair. In a currency exchange, the exchange rate is quoted as the units of one currency in terms of a single unit of a base currency. For example, in a currency exchange of U.S. dollars for Japanese Yen, the base currency is the U.S. dollar.

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Basics of Trading ForexForex trading often involves the simultaneous buying of one currency and selling of another. Therefore, when you buy a currency pair, you buy the base currency and sell the quote currency. The "bid" i ... Read more


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